tv Bloomberg Business Week Bloomberg December 23, 2017 8:00am-9:00am EST
>> welcome to "bloomberg businessweek." >> we are in the magazine's headquarters in new york. >> this week, the #metoo movement. impacting the institutions that help define masculinity. >> and protecting the wild. >> and in a special section, what business is doing to help the world. >> all that a head in "bloomberg businessweek." ♪
>> wherewith to the editor and chief of "bloomberg businessweek " megan murphy, let's start with the back of the magazine, peter metcalf. >> i'm excited we are starting with the game changer, because we don't focus on a lot and it is focused on people doing things you should know about. a little known fact about me, i am of former the time alpine mountaineer. >> are you serious? who knew? >> black diamond equipment, in the mountaineering community, are primarily known for very technical products. so you do not fall off of the mountain. peter is particularly interesting, he has used his position, he stepped down in 2016 from the company, but he used his position in the outdoor industry to motivate them around issues that are important. this is our good business issue, we want to highlight people doing things that tie-in to their position in the business
world, as well as advancing a policy maybe it is a political point, point of view, things they think are worthy of society. >> he was lobbying against the stripping back of federal protections for land. of this actually to the u.s. economy, it is understated. >> it cannot be understated. this is before president trump and of the controversy we have seen about federal lands under this administration. we have talked about on the show before, there has been specific action by the administration to take lands that were formally federally protected around monuments, particularly in the west, causing a huge amount of controversy. federal protections of public lands in america, and in other countries around the world, is a scene by many people as a natural right, they have a right to see the beauties and natural treasures. myself included. that this is something every human being should experience with their own eyes. peter metcalf has been at the forefront in tying the
outdoor industry, which has clout, to protecting our land. >> think it's another example of summary in the private sector saying government, i don't like your message and i will take care of this. >> he did this first in the outdoor apparel show, everyone supported this, saying this has to go into a statement that is what we believe in, access to the wilderness, access to these spots of beauty we want to protect. >> what are the plans? >> he was big mountain climber. ited some of the world's biggest fountains. he does a lot of adventure activities. this is a man who has a voice and cause. i would not expect the cure from him, he will be a force i think or moralizing in terms of his space in san francisco, and a force -- he is nowhere near done. we will be seeing more from him. >> trying to protect another significant industry in this
country. >> speaking of a force for morals, from the back to the front of the magazine, a hit you so square between the eyes. that is #metoo. we have explored to what extent this is impacting various industries. how people are approaching women , the world, perhaps a little differently. >> i'm so glad you said the keyword, which is women. #metoo and this moment of reckoning we are seeing, not only in the u.s., but everywhere, is really about treatment of women and how women have fared and in some cases been overly assaulted, harassed, held back, and in some cases, much less quieter way that women are treated in society and industries. this takes a look at one that is fundamental, and that is the magazine culture, the sexualization of women, how women are made to feel about their bodies, and how they are made to feel how they look. whether or not this national reckoning is extending into some of these more quiet, furtive,
accepted ways women are put in thattain place in society it is so hard for us to get out of. >> these remarks really move me. we have more on them. >> the harvey weinstein allegations started in early october, and within about a week, the #metoo campaign has started. i specifically remember opening facebook and twitter one day and it was this cavalcade of stories. people i knew. being a woman and having reported on sexual harassment, i was aware of how prevalent it was, i knew the statistics, but it is different to see it in a numerical form and then find someone you grew up with sharing the story of something that happened to them 10 years ago and you never knew. i think for women and men, it felt overwhelming for a while. it calmed down and now it is in the news every day. people are making jokes, like
who is it going to be? is this person next? sometimes there have been rumors about people for years. the louis c.k. stuff was out there. there were some whispers about whether or not he was going to get caught up in this and he was. one after the other after the other. i think what has happened is this is something women have known about for a very long time. only now do they have a platform to be able to talk about it openly and in a way they feel comfortable doing and actually be believed. >> a lot of people are wondering too, we've had discussions before, but is this time different? is something different happening? >> i think so. definitely. i wrote a story last year about wasal harassment and why it so prevalent. what we call in media as the peg. the reason for it. originally it was going to be about that and it turned into everywhere i turned, there were similar stories in every industry. women working at all levels.
we wrote something, and it got response, but, you know, for the most part companies were not saying oh my gosh, we had no idea, we're going to change everything. it was still just sort of status quo, a lot of sort of legal checks, things employers can use to get around allegations. arbitration, settlement clauses. all of that still exists, but now they are being called out on it. >> you are telling me that we are starting to see an evolution in terms of how people think about -- men how they think about women because of the stories that have come out, but yet you still talk about hollywood, and how that if you look at the script and how they write about women characters, it still shows that that has not changed in hollywood despite all of the stuff that has happened.
>> i find this fascinating. >> i do too. >> before talk about hollywood, i will say that advertising has changed quite a bit. you can turn on the tv and find men in detergent commercials. there is a cute one where a man is playing fairy princess with his daughter. >> you named this great statistic, 40% of households and the united states have female breadwinners. you do have a significant proportion of men who are stay-at-home, dealing with these kind of things. >> even if it is both parents work and earn equal amounts of money, not one particular parent is going to be doing the laundry. advertising has figured that out. they have to sell their stuff. they need you to feel like you have a relationship with this product. hollywood does not necessarily have that. if you go to a major movie, the chances are, especially in blockbusters, it will be more stereotypical.
>> you wrote about how in the script they described a woman. tell us about that. >> last year there was a , producer who started a twitter account, and he is a producer and he also reads scripts. he started just writing -- his tweets are essentially descriptions of female characters in movies. he anonymizes them all as a jane so that writers are not being called out. jane, 47, is a stunner even for her age. jane, 13, just coming into her womanhood -- or something like that. >> that is quite benign. [laughter] >> they are just very bizarre. >> the description about their looks. >> their looks or how you the viewer are supposed to feel about this woman. that is assuming that you the
♪ >> welcome back to "bloomberg businessweek." >> you can find us online at businessweek.com. >> and on our mobile app. this week, a special section devoted to good business. >> businesses mixing profits with good deeds. >> we talked to our editor about putting it all together. >> just about anything could constitute good business. when you look at what a lot of companies are doing, you find
that there are a lot of companies looking to do things like help people get more fit in india, which is a story we wrote about. or you look at academia and higher education, not usually a place with a lot of innovation, but you have someone like mitch daniels at purdue university doing a lot of innovative things. we spent the year trying to scour for stories like that. >> i feel like there is a theme that crosses the stories, someone going above and beyond the call of duty in many ways. they are passionate about something, they want to disrupt, they want to change, bring greater awareness. that is the biggest theme, beyond the business they are running. >> that is very right. we look at in india, we look at the gym chain. it is a fascinating story. india, as recently as the 1970's, had instituted caloric minimums. people were so underweight that the government said you have to eat this many calories.
an economic boom happened and now they have all the problems we have in the west of obesity, diabetes, and a quarter of all the people who have heart attacks and india, a quarter of them are younger than 40, which is insane. >> i find this shocking, because when i think of india, i think of yoga. i have done yoga for a long time, so i i think everybody in india does it yoga. [laughter] >> it's not a big deal. >> it's not. something like 97% of india does not do yoga. anything like that. it is very small. the gym chain has recently opened something like 20 locations in bangalore in one day. they now have more than 200 locations. they're trying to bring fitness to india. >> it's interesting what he is doing, he's growing a lot. he's also trying to, as you say, they don't have phys ed for kids, they are trying to reeducate the society. and it is working.
>> huge growth, as i said, they yms in bangalore in one day. for a lot of people going to the gym, they've never seen fitness equipment before. the idea of this western gym experience is new. >> it's not coming from the government. >> no, this is all private. >> they are not putting enough. speaking of education, let's talk about mitch daniels. >> purdue university. >> he is a man also making a difference. radical in the education sphere. >> higher education is not a sphere where there is a ton of innovation, it moves very slowly. mitch daniels took over, two-term governor of indiana, known as the blade because of his cutting of budgets. he takes over at purdue and 2013 and immediately does things colleges don't do. one, he froze tuition. for sixth straight academic
years, tuition will be under $10,000. this is that a time when a lot of competitors are seeing tuitions rise and rise, primarily because of a lack of state funding. he froze tuition. he's doing other innovative things, offering something called degree in three, which will allow you to come in, and if you are willing to stay on campus for two summers, which is not the most fun thing, but you take a higher course load and can graduate in three years, which will save you about $10,000. >> tell us about the ceo of sodastream. he is another interesting character, someone who wants to change the world. >> he is a really fascinating guy. sodastream is a fascinating company. if you remember sodastream, you might think back to 2014, there were boycotts. a factory in the west bank, boycott the saying it was an occupied territory. his whole thing, you can call it a shtick or not, you look at the gaza strip and you have 40% unemployment.
you look at mainland israel, 4.5% unemployment. you cannot have peace in the middle east until you have economic equality. his argument is, i have a way in. which is to have these factories. he moved the factory out of the west bank into the largest bedouin city in the world. he has palestinians working to israelis and jews and -- >> egyptian jews, russian jews. >> everyone. >> peace through the workplace. >> exactly. his argument is, if everybody did what he is doing, all of the tensions would go away because instead of treating people like the other, you would say, i know this guy, i work for him, he works for me, we get along great. that is what he is selling, whether or not he can bring a long peace is another question. >> gracing the cover of our good business issue this week is microsoft ceo satya nadella.
>> obviously he is a very powerful man, he runs an enormous company. as we do with a lot of ceos, we not showmanize him and him in a formal business light that you are used to seeing him. he chose his own wardrobe. this is his casual attire. he is sundrenched and leaning against the railing. he looks fairly content. we thought it was a nice feeling. >> in a company like microsoft where you have two iconic leaders so identified with the coming, you have to make your mark, it's not always easy to follow. he is making his own mark and he will be a different kind of ceo. >> one of the takeaways from the interview, he is very empathetic. it made sense to play or add up. the headline is he is the empathy officer. >> up next, reasons to be optimistic about raises.
>> welcome back to "bloomberg businessweek." >> you can also listen to us on radio on sirius xm 119 and on am 1130 in new york, 161 in boston, -- 1061 in boston, 99.1 fm in washington, d.c. and in the bay area. >> and in london and asia on the bloomberg radio plus app. in the business section, a look at how big and influential disney could be after it gobbles up fox studio. >> here is reporter gerry smith. >> disney was already a huge force in hollywood, now you're talking about having the fox
studio as part of disney, that gives them a lot more negotiating leverage with movie theaters, for example. you are already talking about disney having pixar, having the star wars films, and now combined with fox, you also have a huge franchise in avatar, which has a four sequels in the works. >> if are talking about numbers for the movie specifically, box office receipts. >> disney, when it is negotiating for films with theater chains, there is a negotiation about revenue share, usually it is 50-50. disney now has so many successful movies, like a star wars movie, it could use that leverage with theater chains and demand a higher revenue share. that is something they could potentially do with some of the fox films, as well. >> whenever you see this kind of combination, you wonder about how this changes the landscape in the entertainment and media world, how it changes hollywood. disney paid billions of dollars for the bulk of 21st century
fox's assets. it is a big deal. how does it reshape everything? >> is a huge deal for hollywood. specifically, disney is making a big bet on the future. bob iger believes that in the future, we are not going to be signing up for as much cable tv or going to movie theaters. what he wants to do is create streaming services that go direct to consumer. you can subscribe online and never leave the couch. what this means is -- disney already plans to introduce a streaming service for a lot of its movies in 2019, and they could potentially use some of those fox movies for part of that, even potentially hold back some of those movies from being in the theaters and go direct to consumer as part of the disney streaming service. >> does it make disney more powerful when it comes to negotiating for content? everybody needs content on all these services. where does that put disney in the stacking? >> that is interesting, because maybe five or six years ago, a deal like this be really huge
for people selling their ideas in hollywood. now, you have taken away a buyer, because fox and disney are under one-run, but you also -- under one roof, but you also have new buyers. silicon valley companies, apple, facebook, amazon, netflix are all huge buyers of content right now. in some ways, it does take away a buyer of film and tv ideas, but you have something more -- you have so many more buyers of content in hollywood than before. >> productivity in the u.s. has been depressed for a decade, but finally showed signs of life this year. >> we talked to our editor about what this may mean for capital spending but also paychecks. >> it's going on about 1.5% growth, but this is after years of barely anything. it was 2.7% per year, up to 2000 and the eve of the great recession. the highlight this year is we are seeing services start to
pick up. services are 64% of the economy. a big, important thing. the reason is capital expenditure. businesses are going beyond replacing older equipment to buying new equipment, investing in r&d, software and other technology. that is beginning, it is powering the uplift. >> we are all more productive, we are going to be kicking out more stuff. what is that mean for the economy? >> hopefully some of us will get raises. >> another thing we haven't seen for many years. every time the unemployment data comes out, we see that more and more people are working, you would assume of the wages would start to increase but we haven't seen that. >> janet yellen testified before congress of the end of november and said that productivity, she thinks that is the reason wages have not been growing. once we see that sort of start
growing more robustly, that will enable companies to thing about getting wage increases. so right. it also raises the growth potential of the economy. it puts us on a higher track. it would allow the fed to start lifting interest rates without worrying about choking off growth. that is important because when the next recession comes around, central bankers are around the world are worried about how they will fight it when interest rates are so low. >> let's get back to what you were saying about wages. the conundrum for businesses if
julia: welcome back to "bloomberg businessweek." carol: you can also find us online at businessweek.com. and on our mobile app. julia:and on our mobile app. a peek inside the successful senate campaign of doug jones in alabama. carol: and how he was able to get african-american turnout to exceed president obama in 2012. >> one of the reddest states in the union, they had not elected a democrat in 24 years. that person was richard shelby, who soon thereafter switched to the republican party. this is the state that has really come up for all intents and purposes, no real democratic state infrastructure or party that has many links to it. even before he won, people were thinking about it as, he had
already pulled off the improbable. he had funneled millions of dollars of outside democratic money into the state without raising the hackles of conservatives who are wary of outsiders and national democrats. he had built up in a lot of ways through his campaign a state party that was sporadic and almost nonexistent. julia: everyone heard the allegations against roy moore, was this actually a doug jones when or a roy moore loss? particularly given the politics you just talked about. >> that is a totally legitimate criticism. when you look at the question we want to raise, whether this transfers at all, whether they can duplicate the success that doug jones had and spread it to other states, particularly red states in the 2018 midterms. you are not going to get the fundraising advantage that doug
jones had he doubled him up. over roy moore. that is not likely to happen again in any other senate race. you're not going to be able to replicate a polarizing candidate like roy moore. what lessons do translate? you look at the coalition he was able to build between moderates, young people, and the african-american turnout, which was quite substantial. when you look at places like tennessee and texas, immigrants -- that democrats are hoping they will be in play next year, that is part of the playbook that they will want to take advantage of. carol: it is interesting. they were really on the ground and on the phones. it made a lot of phone calls, knocking on doors, going out to get the vote. >> that is right. and they were very careful. one of the most interesting comments we have in here is from somebody at the dnc, which is, they could not be overt about this. the last thing they wanted to do was nationalize the campaign and get, you know, this to be
running on issues like abortion and gay rights, for example. they wanted it to be about a local candidate who looks like the district, strong guy, but they needed to be very careful about raising this to the level of a national campaign, which is why, you know, you do not see people like president obama being very active there, cory booker came in a very late. it were very careful about how to do that. thea: when you talk in article, you talk about some of the supporters were galvanized to action. what specifically was it that was garnering that energy? >> i think it speaks to the larger resistance movement out there. doug jones is a former prosecutor. he is pretty well-known among democratic circles in alabama. to the degree that he was able to energize people as a personality, as a candidate, i think it went much beyond that. with trump in the white house and turning off a lot of
moderate conservatives -- remember, alabama voted for him hands down, one of the biggest margins he had of any state. it was a knock on a trump, and certainly a knock on roy moore. and i think you saw a lot of enthusiasm and energy in a part of the country where the democratic party has not been competitive for generations. carol: staying in politics, the trump administration nears the one-year mark. julia: and the repercussions of lobbyists turned regulators can be seen throughout. who davidl us bernhardt is and why he is getting attention. >> he is the newly appointed number two official in the interior department. that oversees federal land and drilling on federal land among other issues. he is getting attention because he came into that role from being a lawyer in private practice with a very long list of clients. which is not unusual for a natural resources lawyer, but he
it has created challenges at an agency dealing with his former clients. you have noble energy and various mining companies. a long list of clients that now are petitioning the agency. you are seeing, he has taken a lot of steps to mitigate that, he is complying with some recusal requirements. but at the same time, they are making policy decisions at interior that match the former client wishes. carol: i want to talk about the broader story. it is pretty significant in terms of lobbyists turned into sympathetic regulators. with bernhardt specifically, there was a pipeline, it was not allowed to go under the obama administration, but with the new administration of regulator, -- and a new regulator something , is happening. >> in his previous role, he worked with a los angeles developer helping them, trying to help them get federal
approval for a pipeline that would send water from the mojave desert to los angeles. blocked by the obama administration. just in the last year under the trump administration, a complete reversal and policy. the interior department saying the government approval is not needed to lay the pipe in an existing right-of-way after all. carol: that is a specific case. let's talk about the broader story. we are one year into the trump administration, and what we are seeing in very senior positions in the administration and even lower positions who can still change policy, they were lobbyists and are now regulators. >> to some degree, it is nothing new. administrations of all stripes have picked people from the private sector. democratic administrations, president obama tended to pull from environmental immigrations. republicans tend to pull more from the business side.
we're seeing a lot of that. but it is to a surprising degree, the number of people who were executives or lobbyists for private enterprise are now in charge of regulating the same issues they used to work on as lobbyists. carol: another example, a mining executive now in charge of mine safety. a chemical lobbyist writing a chemical safety rules. why does it feel that, to be fair, why does it feel like now we have the fox in charge of the henhouse, when it did not feel like that under the obama administration? >> i talked to democratic senators who say the volume is just so much more now. you are seeing it from the top and throughout the ranks of federal government. at epa, the administrator, scott pruitt built his career suing the agency he is now in charge of. down through the ranks of agencies such as epa, you see a former lawyers and lobbyists
working critically on regulations they previously sought to weaken. it starts at the top and is reaching into the ranks of federal government in a way that is surprising some folks on the hill and public government advocates. julia: next, the bitcoin market trying to attract goldman sachs. carol: this is "bloomberg businessweek." ♪
♪ carol: welcome back to "bloomberg businessweek." i am carol massar. julia: i am julia chatterley. you can listen to us on the radio on sirius xm 119 and on a.m. 1130 in new york, 99.1 in washington, d.c., and in the bay area. carol: and in london and asia on the bloomberg radio plus app. in the technology section, a
coinbase is the website used by cryptocurrency buyers. julia: it is trying to prove it is safe enough for goldman sachs. >> coinbase is one of the most popular places to buy and sell bitcoin in the u.s. if you're going to buy your first, you might go to coinbase. it is like a household name. carol: how much is going back and forth? an hey have exchanged $57 billion with the digital currency in 2017, the last number i heard from them. that is a lot. they have got to be excited by the attention that all of a certain the world is spending on bitcoin and digital currencies, and the meteoric rise of bitcoin. >> i think it is exciting, it also poses challenges. this is a 225 person company. in a lot of ways, it is still a startup. it is on one floor. there is still that startup
charm when you walk in. there is a ping-pong table, a beer fridge, but they have doubled the size of the company this year and will double again next year. they are ultimately looking at an ipo. they are sort of growing up. carol: who are the people behind it? >> it was cofounded by a man named brian armstrong. he was in the tech world. a lot of the guys are from silicon valley. coinbase has two separate exchanges. coinbase.com is for retail investors, where you go if you did not know much about it. and they also have the global digital asset exchange that is targeted more for institutional money. carol: how much is retail? how much is institutional? >> we don't have a breakdown of the numbers. thathat i can tell you is by account numbers, most of the customers are retail investors. most of the trading volume is from institutions. when i say institutions, i mean
small cryptocurrency hedge funds. more than 100 of those have popped up just this year. julia: not yet mutual funds? >> not yet. the c.e.o. said to me it is not goldman sachs yet, but i think it will be. carol: let's explore that a little. that's what they want to do, they kind of want to use coinbase and digital money to reinvent finance. >> they have an vicious school -- they have an ambitious goal. they want to reinvent the global financial system. what they see in five to 10 years is a world where maybe you don't have to go to a bank to get a loan. you could do it online through a company like theirs using digital currency. there are all the steps they have taken to get there. the first up was creating an exchange and targeting retail investors, the everyday person. the next step is targeting the big wall street money.
carol: let's talk about the wall street money. i feel like we get mixed messages from wall street, folks say bitcoin makes no sense, and yet they certainly are spending r&d time and money on bitcoin and its uses. does coinbase need these big financial firms on board? >> it would certainly help. have people like jamie dimon who say we will fire anyone who trades bitcoin. but they cannot really ignore it. all their clients are asking for it. but they have to worry about reputational risk or customer rules. coinbase realizes that and they are offering products to try to solve that problem. carol: i think they need regulatory oversight to be legit. i assume they expect that. do they want that? >> coinbase has had a pretty friendly attitude toward regulators.
the way they are currently regulated is a patchwork system through states. they have money transmitter licenses in 38 or 40 states, and they are federally regulated. but not by the big traditional financial regulators you think about. we may see that happen at some point. carol: "bloomberg businessweek" is available on newsstands now. julia: and online at businessweek.com. #metoo us felt for the story. carol: she talked about how we are seeing cultural institutions and how they are changing how they approach women's issues. i think that is good they are doing this. we are seeing slight changes. julia: and yet she contrasted it with hollywood scripts and the way they describe women. perhaps greater work needs to be done. carol: loads to be changed but i'm glad the conversation is continuing.
>> winsock to nadella took over microsoft, he was only the third person to lead the company. >> i grew up in the company that bill and steve built. i am proud of it. book,, nadella candidly outlines the changes he has made as c.e.o. and what defines the company today. satya: success is not built for moving -- by moving from hit to hit.